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Results for Business 2014 2014 KENTUCKY GENERAL ASSEMBLY Results for Business What passed. What didn’t. And what it means to your bottom line. Kentucky Chamber President & CEO Dave Adkisson and Rep. Leslie Combs Kentucky Chamber Chairwoman Elizabeth McCoy Kentucky Chamber Public Affairs Manager Ashli Watts 2014 session missing key pieces of success Lack of legislative progress disappointing Public-Private Partnerships HB 407 (Combs) would have authorized the use of public-private partner- THE STATE BUDGET is always the giant But even a limited review quickly reveals P3 ships (P3s) by state and local governments to encourage competition for in the room when the General Assembly a list of negatives far longer than Kentucky private sector investments, save tax dollars and promote transparency and meets in even-numbered years. That’s under- can afford. accountability. Every state bordering Kentucky already has P3 legislation. standable, since the two-year spending plan At the top of the list is the legislation nick- (Passed General Assembly, vetoed by governor, not considered in House sets policy and determines the direction of named “the P3 bill” to develop a mechanism for override) state agencies across the board. for greater use of public-private partnerships to As the giant, the budget gets the most save taxpayers’ money and create a transparent, Smoke-Free Workplaces legislative time and attention, particularly in accountable process of contracting for needed HB 173 (Westrom) and SB 117 (Denton) would have prohibited smoking the closing days and hours when differences services or infrastructure projects. in all indoor public places and workplaces and received overwhelming between the House and Senate are debated in The P3 bill passed the House by a support from Chamber members. (Not considered) marathon (and sometimes contentious) 10-to-1 margin and Senate by a 3-to-1 Medical Review Panels negotiation sessions. margin, both with overwhelming bipartisan SB 119 (Denton) would have implemented a medical review panel process This might make it understandable that, support. But Gov. Steve Beshear vetoed the for cases brought against health care providers to help put an end to the in so-called budget sessions, there generally is measure because of a House amendment that growing number of meritless lawsuits that increase Kentucky’s health care would prohibit the use of tolls to help fi- limited progress on other initiatives. Add the costs. Medical review panels will have a stabilizing influence on our medical fact that even-numbered years also find all nance the reconstruction of the Brent Spence malpractice system, making the state more attractive to employers while House seats and half of the Senate seats on Bridge in northern Kentucky. And, unfortu- helping to retain and attract quality healthcare providers. (Passed Senate, the ballot, and you have a scenario that favors nately, the House – where the bill originated not considered by House) slow walking on the policy front. – declined to override the veto, meaning it Again, that might be understandable. did not come up for further action in the Telecomm Reform But understandable and acceptable are two Senate. SB 99 (Hornback) would have modernized Kentucky’s outdated telecom- entirely different things, and the missed In our view, the bill was the most munications laws to encourage investment by telecommunication companies opportunities of the just-concluded 2014 important piece of job creation legislation in modern high-speed broadband internet and mobile services. (Passed session falls well into the “disappointment” passed this year, and, as such, had the Senate, not considered by House) category. support of more than 35 civic and business Granted, the 2014-2016 enacted budget organizations. The governor’s veto was Charter Schools does include several positive elements, particu- unnecessary and should have been SB 211 (Wilson) would have allowed persistently low-performing schools larly in its restoration of funding for elementary addressed with swift legislative action in the to be designated as charter schools in order to provide more flexibility to and secondary education that was lost during final days of session. This was definitely a turn around schools that are not meeting the needs of students. HB 85 (Montell) would have broadly authorized charter schools in Kentucky. (SB the recession and full funding of the Kentucky missed opportunity to move Kentucky 211 passed Senate, not considered by House) Retirement System (KRS). There were positive forward – and to catch up with the 34 targeted tax relief measures for industries such other states where public-private partnership Local Option as our signature bourbon industry and a tax laws already exist. HB 399 (Thompson) and SB 135 (Hornback) would have allowed voters incentive to encourage “angel” investments in In addition to the negative outcome for the chance to authorize local communities to vote for a temporary sales tax new start-up companies. the partnership legislation, this session came to fund important local projects. (Not considered) Juvenile justice reforms won passage to up short in many other key areas as well (see give youthful offenders a better chance of chart). Expanded Gaming turning their lives around. And the legislators When Kentucky voters approved the SB 33 (Seum), HB 67 (Clark) and HB 584 (Stumbo) would have allowed standing strong against efforts to increase constitutional amendment to allow annual voters to decide whether to expand gaming in Kentucky to provide a much- workers’ compensation costs, politicize the legislative sessions, it was with the hope that needed boost to state revenues as well as to recoup the hundreds of Public Service Commission, repeal the state’s every session, every year, would mean progress millions of dollars being spent annually in casinos in neighboring states. tough academic standards and enact onerous for the state. The 2014 session fell far short of (Not considered) coal-mining restrictions was commendable. that mark. The Kentucky Chamber of Commerce provides leadership as a catalyst, consensus-builder and advocate to unite business and advance Kentucky. 464 Chenault Road, Frankfort, KY 40601 | 502-695-4700 | kychamber.com | twitter.com/kychamber PRO-BUSINESS LEGISLATIVE VICTORIES The following measures were considered positive by the Kentucky Chamber and were enacted into law in the 2014 session of the General Assembly. Bourbon Tax Credit Contractor Notification HB 529 (Butler) enacts a “Bourbon Barrel Tax Reinvest- HB 467 (Denham) allows businesses to enter the Business voices ment Credit,” which levels the playing field for Kentucky information of their subcontractors on the Division of bourbon by allowing Kentucky distilleries to take a corpo- Workers’ Claims website and receive notification when “The passage and enactment of HB 369 would not rate income tax credit to offset the amount of ad valorem there has been a change or cancellation in their have occurred without the leadership & advocacy taxes paid each year. Passed as amendment to HB 445. subcontractor’s workers’ compensation insurance coverage. Passed as amendment to HB 84. of the Kentucky Chamber. This legislation will Angel Investment Credit reduce our legal risk, provide cost savings and HB 37 (Simpson) creates an angel investor tax credit to Kentucky Environmental Standards ensure Kentucky remains competitive in encourage private investment to help start-up companies HB 388 (Gooch) establishes Kentucky-based stan- attracting and retaining businesses.” grow and prosper. Passed as amendment to HB 445. dards for greenhouse gas emissions by electric utilities. Gretchen Copley This measure pushes back on U.S. EPA’s ruling to regu- Counsel for Corporate Lowered Statute of Limitations late greenhouse gas emissions which will drive up Ken- & Government Affairs KEMI tucky’s electricity prices. HB 369 (Yonts) lowers the statute of limitations for Linking Education to Employment written contracts from 15 years to 10 years. Streamlined Alcohol Laws HB 87 (Yonts) requires higher education institutions to Juvenile Justice Reform SB 83 (Schickel) continues the effort to modernize Ken- disseminate information regarding employment rates and earnings by degrees and academic majors. This will SB 200 (Westerfield) reforms Kentucky’s juvenile justice tucky’s alcohol laws by allowing the expanded sales and production of malt beverages and ciders. The measure allow students to make informed educational choices to system by helping youthful offenders redirect their lives develop job skills. while ensuring public safety and a more efficient use of also clearly defines the definition of a micro distillery to state tax dollars. help start-up companies. HB 475 (Clark) allows a local option election for the sale of alcoholic beverages by Workers’ Comp Reporting Data Breach Notification the drink at state parks. HB 349 (Waide) simplifies the requirement for busi- nesses which must file tax returns, partnership agree- HB 232 (Riggs) sets forth commonsense requirements Tax Tourism Incentives ments and articles of organization with the Department for employers to notify customers in the event of a data of Workers’ Claims. breach that could expose individuals to identity theft. HB 493 (Adkins) would expand tourism development incentives. The idea originated from the bipartisan Small Business Credits SOAR initiative designed to address ways to create op- HB 301 (Palumbo) simplifies and streamlines the Small portunities in eastern Kentucky. Business Tax
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